An exemptive relief that the Securities and Exchange Commission granted last week to Rule 22c-2 is welcome news for mutual fund companies, as it will pave the way for the use of an alternate system of identifying foreign investors who are market timing mutual funds.

Late last month, the Investment Company Institute (ICI), on behalf of all registered investment companies, along with the Institute of International Bankers (IIB), a group that represents the non-U.S. community of foreign financial services intermediaries, petitioned the SEC. The two groups asked to circumvent one portion of a rule set to take effect April 16, explaining to the SEC that privacy rules in other non-U.S. regions, including the member nations of the European Union, were presenting a compliance obstacle between some mutual funds and foreign financial intermediaries.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.